Jeffrey Immelt, Chairman and CEO of General Electric, Acquired 50,000 Shares of the Company on ...
- By Jennifer Chiou
Jeffrey Immelt (Insider Trades), chairman and CEO of General Electric Co. (GE), acquired 50,000 shares of the company on Nov. 9. The average price per share was $29.24, for a total transaction of $1,462,000. General Electric, a producer of household and commercial electronics and lighting, has a market cap of $274.93 billion.
Warning! GuruFocus has detected 6 Warning Signs with GE. Click here to check it out.
The intrinsic value of GE
Though the number of insider trades of GE remained the same from 2014 to 2015, the volume of insider buys grew from 168,900 to 883,500. There was also a decrease in insider sells of GE from 19 transactions totaling 2,299,733 shares to no insider sells the following year. This may be in part due to the merging of General Electric Capital Corp. into General Electric Co. in 2015, as GE Capital Equity Investments (Insider Trades) sold 100% of all insider shares sold in 2014. Immelt purchased a total of 312,500 shares of the company since 2013 and 167,600 shares in 2016 to date. Immelt's earliest insider purchase with GE, 40,000 shares at an average price of $25.04 per share, increased in value by about 20% since then. For more information about insider trades with GE, click here.
For the three months ended Sept. 30, the company reported total revenue of $29.266 billion. This is a 4% increase from the company's reported total revenue of $28.03 billion in the third quarter of the previous year. Despite the increase in revenue when comparing the third quarter of 2015 to 2016, net earnings for the same period of time decreased by about 20%, from $2.506 billion, to $1.994 billion. This equates to diluted earnings per share of 19 cents and 23 cents for the third quarters of 2015 and 2016, respectively. Dividends per common share remained the same for both quarters.
On Nov. 10, GE announced that its agreement with Clarke Energy, an authorized distributor of GE's Jenbacher gas and diesel engines, will connect more than 700 assets globally to GE's myPlant Asset Performance Management (APM) solution. Anthony Hayes, group IT director at Clarke Energy, commented that Clarke has "good reason to advance its use of GE's myPlant Asset Performance Management solution," because the engineers at Clarke are "automatically notified about unscheduled generator stops at customer sites... via text message or email." This allows the engineers to monitor and diagnose problems, and ultimately solve issues with a decreased need for manpower.
According to GuruFocus information, General Electric Co. has a business predictability rank of 1 out of 5 stars. For more information about business predictability rank, click here.
In the third quarter, John Hussman (Trades, Portfolio) and Steven Romick (Trades, Portfolio) reduced their stakes in GE. Hussman sold all 400,000 shares of the company at an average per-share price of $31.13 after increasing his stake by 14.29% at an average per share price of $29.47 in the first quarter of 2016. The total estimated gain of the holding since the fourth quarter of 2015 is 5%. Romick sold 1,011,640 shares of the company during the third quarter of 2016, reducing his stake in the company by 12.01%. Romick reduced his stake each quarter since the first quarter of 2016. The total estimated gain of the holding since the first quarter of 2015 is 22%. For more information about guru trades with GE, click here.
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This article first appeared on GuruFocus.
Warning! GuruFocus has detected 6 Warning Signs with GE. Click here to check it out.
The intrinsic value of GE